In June, 2010, Finavera engaged Capital West Partners to run a structured process with a mandate to secure a partner to provide the equity, or approximately $200 million of the estimated $800 million capital cost of the project portfolio. In exchange for the right to provide equity, the interested potential partners were asked to provide Finavera with a substantial free carry in the projects. Substantive proposals were received from several large utilities, wind developers and investment groups. Finavera assessed the proposals during July and August after which they were shortlisted. The Company is currently completing due diligence and negotiations with one preferred equity provider and expects to sign definitive agreements for one or more of the near term projects by the end of January 2011.
Finavera Renewables CEO Jason Bak said, "Securing an equity solution is one of the most important milestones for the development of a wind farm. We were pleased with the number of interested parties from North America and China and the quality of proposals we have received. The completion of this process will result in a significant ownership interest in these projects for Finavera and will ensure that we have a strong, value-adding partner working with us through construction and operation. It will also provide a project financing solution that minimizes dilution of the Company’s capital structure. With financial close on our first two projects targeted for the third quarter of 2011, we remain on track to begin construction next year and achieve commercial operation in late 2012."
Finavera Renewables is a wind energy development company focused on developing, constructing, and operating wind farms in North America and Ireland. Our mission is to create and operate a viable renewable energy business while protecting and enhancing the physical and social environment. In British Columbia, Canada, projects totaling 301 MW have been awarded 25 year Electricity Purchase Agreements. In Ireland, the Company has signed a co-development agreement with Scottish and Southern Renewables for the 105MW Cloosh Valley Wind Project. Data collection and environmental studies have been continuing at a number of prospective sites in Canada and the United States.